Marcos Confident Of Philippine Economic Recovery
President Ferdinand Marcos Jr. is hopeful that the Philippine economy will bounce back by 2026 and reach the government’s target range by 2027, thanks to a big drop in inflation. The comments came after a report from the Bangko Sentral ng Pilipinas (BSP) revealed that inflation had dropped to 1.7 percent, which meant that prices were starting to calm down.
The evaluation was given at a Malacañang meeting with high-ranking officials from the economic sector, including BSP Governor Eli Remolona and Finance Secretary Frederick Go. The committee talked about the country’s overall macroeconomic outlook and looked at recent choices about monetary policy.
Inflation Falls As BSP Adjusts Monetary Policy
The Presidential Communications Office (PCO) said that the Monetary Board agreed to lower the policy rate to 4.75 percent. This was done to make it easier for households and companies to borrow money. The BSP report said that inflation for the poorest 30% of families had dropped even further, to -0.4 percent.
Officials noted that this drop in inflation shows that the economy is becoming more stable and predictable, which gives policymakers more freedom to promote private investment and domestic consumption. The new orientation of the central bank backs the government’s drive for economic development that includes everyone, even though 2025 will be hard.
BSP Says Inflation Will Stay Stable Until 2027
Eli Remolona, the Governor of the BSP, told the President why the latest interest rate drop was made. He said it was meant to boost demand and keep the economy going. He also said that pressures on the supply side have lessened, which has made prices more stable for important goods.
The BSP currently thinks that inflation would average 3.1 percent in 2026, which is well within the government’s goal range of 2 to 4 percent. It will then drop to 2.8 percent in 2027 as supply circumstances in the US and across the world return to normal.
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Economic Growth Expected To Strengthen By 2026
Both the BSP and the Department of Finance foresee a substantial comeback starting next year, even though growth would be slower in 2025. Analysts expect that company confidence will rise, investment will increase, and jobs will be created more quickly now that inflation is stable and borrowing rates are lower.
Because inflation is going down, fiscal planners have more options for how to support public infrastructure expenditure, make credit more available, and get people to spend more money, which makes for a more balanced growth environment.
Marcos Reaffirms Commitment To Stability
President Marcos said again that he is committed to keeping the economy stable. He stressed that his administration will keep making broad-based, long-term growth for all Filipinos a top priority. He remarked that the current changes provide us a “window of opportunity” to make many areas, such as agriculture, industry, and services, more resilient.
Marcos said again that the government’s key goals are to protect families from price swings, keep spending in check, and make sure that economic recovery reaches all parts of the country. He also stressed that keeping inflation under control is still a key part of his long-term economic plan.
Monetary Easing Seen As A Boost For Borrowers
The BSP’s choice to drop the policy rate should make borrowing cheaper, which would make loans for homes, businesses, and consumers easier to get. This might encourage people to spend more, especially small and medium-sized businesses (SMEs) that need loans to grow.
Economists think that the change in policy may boost domestic demand while keeping inflation risks low, as long as supply shocks like those from food or energy are kept under control. The action shows that the central bank trusts the country’s economic fundamentals.
Gradual Recovery And Sustainable Growth
Economic planners expect the economy to slowly become better over the next two years, as long as inflation is low and monetary policy stays supportive. The government’s fiscal policies and infrastructure projects are projected to speed up the economy’s growth until 2027.
President Marcos said that the Philippines is now “better positioned to sustain growth” since inflation is easing and conditions across the world are stabilizing. He indicated that the major goals would be to keep policy rigor, build trust in investments, and promote growth that includes everyone across the archipelago.
